The national debt is unlikely to cause national bankruptcy because the:
A. national debt can be refinanced by issuing new bonds.
B. interest on the public debt equals GDP.
C. national debt cannot be shifted to future generations for repayment.
D. federal government cannot refinance the outstanding national debt.
Answer: A
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In the short run, a decrease in planned investment will ________.
A. raise the unemployment rate and reduce the rate of inflation B. reduce both the unemployment rate and the rate of inflation C. raise both the unemployment rate and the rate of inflation D. reduce the unemployment rate and raise the rate of inflation
The liquidity preference theory ________
A) distinguishes between nominal and real quantities B) shows that demand for real balances depends on real income C) shows that demand for real balances depends on the nominal interest rate D) all of the above E) none of the above
In an open economy, how many TVs will this country import?
A. 30,000 B. 90,000 C. 60,000 D. 120,000
A firm's marginal factor cost describes
A) the increase in the firm's total revenue as one more unit of output is sold. B) the change in total fixed cost that results from hiring one more unit of input. C) the change in total variable cost that results from the production of an extra unit of output. D) the change in total cost that results from using one more unit of an input.